HomeIran News NowFactional Warfare in Iran Over US Talks, Succession Mutiny, and Currency Collapse
Iran News Now Factional Warfare in Iran Over US Talks, Succession Mutiny, and Currency Collapse
Written by Dr. Masumeh Bolurchi
17th July 2026
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FILE PHOTO: Brawl between MPs in Iran’s parliament (Majlis) Two-minute war
On July 14, 2026, a massive state ceremony at Tehran’s Musalla, orchestrated to cement hereditary succession under Mojtaba Khamenei, instead exposed a deeply volatile regime fracture. While Mostafa Khamenei (Mojtaba’s older brother) urged patience, the hardline crowd erupted into hostile chants of “Death to the compromiser!” and “Pezeshkian, where is your commitment?”. This internal crisis promptly spilled into an executive-military clash; The regime’s president Masoud Pezeshkian openly attacked the state broadcaster (IRIB), declaring, “When they say on the IRIB that the military is on one side and the government is on another, this means a rift and that’s what Israel does.”
This internal rupture has triggered a vicious “war of thugs” over reviving negotiations with Washington. Parliament Speaker Mohammad-Bagher Ghalibaf issued a detailed statement defending his stance, stating, “Negotiation at this stage… is not equivalent to compromise, but rather, alongside war, it is part of the strategy of resistance and safeguarding national interests.”
Bolstering this faction, Expediency Council member Gholam-Ali Haddad-Adel explicitly rooted for talks, asserting, “That the nation wants revenge and the leadership of the nation also wants revenge has no contradiction with negotiation. Negotiation can also be in the direction of securing the nation’s interests.”
However, the regime’s uncompromising ultra-hardliners have staged a ferocious counter-offensive. Alireza Arafi, a senior member of the Guardian Council, publicly demanded a total termination of the late June 2026 nuclear memorandum, insisting that the president “must consider the memorandum finished and take the path of steadfastness.” Directly mocking Pezeshkian’s economic anxieties, Arafi warned that “officials should not back down from the rightful rights of the Islamic Ummah under the pretext of economic problems and fear of war costs,” while MP Hamid Rasaee slammed Ghalibaf for closing the parliament, accusing security organs of silencing media outlets criticizing “negotiation and agreement with the leader’s killer.”
"Washington was prepared to provide a financial and #diplomatic lifeline; however, Tehran's regime lacked both the will and the capacity to play along. Because it is too weak and fragile to accept it," @MehdiOghbai writes.https://t.co/6R3QiV6hSS
— NCRI-FAC (@iran_policy) July 14, 2026
Kinetic Warfare, Terror Listings, and Systemic Ruin Tehran’s institutional paralysis has left it completely exposed to shifting military realities. Overnight on July 16, 2026, US military air strikes targeted and destroyed critical infrastructure and transit routes across southern Iran, prompting frantic retaliatory strikes by Tehran against Kuwaiti energy hubs and Iraqi Kurdistan. Consequently, on Friday, July 17, 2026, the free market panicked. The US dollar skyrocketed past an unprecedented 191,000 tomans on trading platforms like TGJU, entirely erasing the temporary economic stabilization achieved by the June memorandum.
Meanwhile, the formal terrorist designation of the Islamic Revolutionary Guard Corps (IRGC) by the British government has triggered absolute panic within state-run media. On July 17, 2026, the daily Resalat condemned the listing as a highly “provocative step,” while the IRGC-affiliated outlet Tabnak warned that “calling the IRGC a terrorist group opens Britain’s hand for military operations against Iran” and will allow Western powers to smoothly seize state assets abroad.
Under existential threat, the regime has escalated localized terror, exemplified by border guards fatally shooting a Kurdish kulbar in Oramanat on July 14, 2026. Yet, this domestic brutality is fueling a massive revolt within Iran’s penal system, where thousands of inmates in Ghezel Hesar prison are maintaining a severe hunger strike against executions.
Concurrently, human rights data indicates catastrophic overcrowding and the illegal mixing of political dissidents with ISIS convicts inside Shiraz’s Adelabad prison. As the clerical elite cannibalize one another over foreign policy, this profound systemic decay offers an unprecedented opening for the organized democratic coalition to transform widespread public fury into another wave of uprisings against the clerical dictatorship.
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